Would you like to live until you're 100? You stand a much better chance of reaching that ripe old age now since average life span estimates are longer than ever.
The problem is, though, your superannuation may not be enough for a comfortable life in retirement.
According to the website for the government's 2015 inter-generational report, current life expectancy at birth for men and women is 91.5 and 93.6 years, respectively. In addition, people nearing retirement age now could make it well into their late 80s or early 90s.
The Australian Financial Review reported the chairman of retirement income at Challenger Limited (ASX: CGF), Jeremy Cooper, stating the general target of $1 million in savings probably will be insufficient.
He added, "The brutal reality is that a fair price for an age pension in today's interest rate environment is around $1 million. For that amount, a couple will get $33,717 of income a year. A comfortable retirement would cost more."
You may have both aged pension benefits and superannuation savings, but covering expenses for another two or three decades after retiring may be a daunting financial task.
That's why share investing over the long-term could fill the gaps and even provide more for a comfortable lifestyle. You should start soon because the long-term potential gains come from many years of compounding interest on your returns.
Having a sizeable proportion of your portfolio made up of quality dividend stocks is wise. Solid dividend-paying companies that steadily grow dividends like the ones below could be a good start.
Westpac Banking Corp (ASX: WBC) currently offers a 4.8% fully franked yield. Over the past five years, dividends are up an average annual 9.4%. As one of the big four banks, Westpac should be around for a long time, so investors may look forward to stable dividend income growth over the coming decades.
Insurance Australia Group Ltd (ASX: IAG) also has a good dividend track record in the past five years. It is the largest general insurance company listed in the ASX. Its recent acquisition of Wesfarmers Ltd's (ASX: WES) insurance underwriting business should increase revenue and help maintain its market leader position. The stock offers a fully franked 6.1% yield- much higher than most term deposit rates.
Perpetual Limited (ASX: PPT) is a fund management company that could become a blue-chip stock in the future as it grows more. Dividends grew in the double digits in financial year 2014 and that is expected to continue over the next few years. The stock yields a healthy 3.6% yield fully franked and is trading at a reasonable share price compared to its forecast double-digit earnings growth.